Income  Tax 
Information 


Rules  and  Regulations 

IV 


Compliments  of 

TRUST  DEPARTMENT 


iARRIS  TRUST  £r  SAVINGS  BANK 

Organized  as  N.  W.  Harris  Co.  1882.  Incorporated  1907 

HARRIS  TRUST  BUILDING,  CHICAGO 


Income  Tax 
Information 


Rules  and  Regulations 

IV 


Compliments  of 

TRUST  DEPARTMENT 

Harris  Trust  &-  savings  Bank 

Organized  as  N.  W.  Harris  &-  Co.  1882.  Incorporated  1907 

HARRIS  TRUST  BUILDING,  CHICAGO 


HARRIS  TRUST  &•  SAVINGS  BANK 


(7\  D.  1894) 


Income  tax  ruling  as  to  how  and  by  whom 
certificates  of  ownership  may  be  signed 
in  cases  where  bonds  of  corpora¬ 
tions,  joint  stock  companies, 
or  associations,  and  insur¬ 
ance  companies  are 
owned  by  nonres¬ 
ident  aliens. 


Washington,  D.  C.,  Nov.  12,  1913. 

T o  Collectors  of  Internal  Revenue : 

Coupons  (or  orders  for  registered  in¬ 
terest)  payable  in  the  United  States,  repre¬ 
senting  the  interest  on  bonds  owned  by 
non-resident  aliens,  must  be  accompanied 
by  the  prescribed  Certificate  Form  1004,  as 
per  Treasury  Regulations  of  October  25, 
1913 — but  this  certificate  may  be  signed 
either  by  the  owner  himself  (herself  or 
themselves)  or  in  behalf  of  the  owner  by 
a  reputable  bank  or  bankers,  or  other  re¬ 
sponsible  collecting  agency,  certifying  to 
the  ownership  of  the  bonds  and  giving  the 
name  and  address  of  the  bona  fide  non¬ 
resident  and  alien  owners,  and  when  such 
Certificate  is  thus  attached  the  normal  tax 
of  one  per  cent  cn  such  coupons  or  interest 
orders  need  not  be  withheld  at  the  source 
by  the  Debtor  or  collecting  agency. 

Respectfully, 

W.  H.  OSBORN, 
Commissioner. 


Approved : 

W.  G.  McADOO, 

Secretary  of  the  Treasury. 

— — - — — — . — — - — -- — - - ■ —  M 


HARRIS  TRUST  SAVINGS  BANK 


(T.  D.  1897) 

Instructions  to  Collectors  Relative  to  Corpora¬ 
tions,  Joint-Stock  Companies  or  Associa¬ 
tions,  and  Insurance  Companies  Mak¬ 
ing  Return  of  Annual  Net  Income 
for  Their  Fiscal  Years  Instead 
of  the  Calendar  Year . 

Washington,  P.  C.,  Nov.  14,  1913. 

To  Collectors  of  Internal  Revenue: 

The  Federal  income-tax  law  (section  2, 
act  of  Oct.  3,  1913)  authorizes  corpora¬ 
tions,  joint-stock  companies,  etc.,  under 
certain  conditions  to  make  their  returns  on 
the  basis  of  an  established  “fiscal  year,” 
or  consecutive  12-months’  period,  which 
may  be  other  than  the  calendar  year. 

Pursuant  to  this  provision,  the  following 
instructions  are  issued  for  the  guidance  of 
collectors  and  other  interested  parties: 

Any  corporation,  joint-stock  company  or 
association,  or  any  insurance  company,  sub¬ 
ject  to  the  tax  imposed  by  this  act,  may,  at 
its  option,  have  the  tax  payable  by  it  com¬ 
puted  upon  the  basis  of  the  net  income  re¬ 
ceived  (accrued)  from  all  sources  during 
its  fiscal  year,  provided  that  it  shall  desig¬ 
nate  the  last  day  of  the  month  selected  as 
the  month  in  which  its  fiscal  year  shall  close 
as  the  day  of  the  closing  of  its  fiscal  year, 
and  shall,  not  less  than  thirty  days  prior  to 
the  date  upon  which  its  annual  return  is  to 
he  filed,  give  notice,  in  writing,  to  the  col¬ 
lector  of  internal  revenue  of  the  district  in 
which  its  principal  place  of  business  is  lo¬ 
cated,  of  the  day  it  has  thus  designated  as 
the  closing  of  such  fiscal  year. 

In  pursuance  of  this  provision,  a  cor¬ 
poration  or  like  organization  subject  to  this 
tax  may,  for  example,  designate  the  30th 
day  of  September  as  the  day  for  the  clos¬ 
ing  of  its  fiscal  year,  whereupon  its  return 
of  annual  net  income  shall  be  filed  with  the 
collector  of  internal  revenue  of  the  district 
*  in  which  its  principal  place  of  business  is 
located  not  later  than  60  days  after  the 
close  of  its  said  proposed  fiscal  year;  that 


3 


HARRIS  TRUST  dr  SAVINGS  BANK 


is  to  say,  on  or  before  the  29th  day  of  No¬ 
vember  next  succeeding. 

The  date  of  the  closing  of  the  fiscal  year 
having  been  designated,  notice  thereof  must 
be  given  to  the  collector  not  less  than  thirty 
days  prior  to  the  last  day  of  such  sixty- 
day  period.  In  the  case  just  instanced,  the 
notice  must  be  given  not  later  than  Octo¬ 
ber  31. 

If  such  designation  (Sept.  30,  1913),  had 
been  made  and  notice  given,  as  hereinbefore 
indicated,  as  to  the  closing  of  the  fiscal  year 
1913,  the  corporation  would  be  authorized 
to  make  its  return  and  have  the  tax  payable 
by  it  computed  upon  the  basis  of  the  net 
income  received  (accrued)  by  it  during  the 
period  from  January  1  to  September  30, 
1913,  both  dates  inclusive. 

In  the  absence  of  such  designation  and 
notice  of  the  closing  of  the  fiscal  year  cor¬ 
porations  and  like  organizations  subject  to 
this  tax  will  be  required  to  make  their  re¬ 
turns  and  have  the  tax  computed  upon  the 
basis  of  the  net  income  for  the  calendar 
year. 

Collectors  of  internal  revenue  receiving 
notices  of  the  selection  and  designation  of 
the  “fiscal  years,”  as  above  indicated,  will 
make  record  of  the  same,  recording  (a) 
the  name  of  the  corporation  or  like  organi¬ 
zation,  ( b )  the  date  when  the  notice  was 
given,  (c)  the  day  designated  for  the  clos¬ 
ing  of  the  fiscal  year,  and  ( d )  the  date  when 
the  return  under  such  designation  must  be 
filed,  which  must  be,  as  above  stated,  not 
later  than  the  last  day  of  the  60-day  period 
next  following  the  day  designated  as  the 
close  of  the  fiscal  year. 

If  it  shall  appear  that  for  the  current 
year  the  notice  was  given  within  the  pre¬ 
scribed  time — that  is,  within  30  days  of  the 
last  day  of  the  60-day  period — the  1913 
return  may  be  made  as  of  the  fiscal  year 
so  established ;  otherwise  it  will  be  made 
on  the  basis  of  the  calendar  year  until  such 
time  as  the  designation  shall  be  duly  made 
and  notice  thereof  properly  given. 

The  designation  and  notice  can  not  be 
retroactive;  that  is  to  say,  if  a  corporation 


4 


HAPvRJS  TRUST  6-  SAVINGS  BANK 


now  designates  April  30,  1914,  as  the  date 
of  the  closing  of  its  fiscal  year  and  gives 
notice  of  such  designation,  it  would  not  be 
authorized  to  make  a  return  for  the  4 
months  ended  April  30,  1913,  and  then  for 
the  fiscal  year  ended  April  30,  1914,  nor 
would  it  be  authorized  to  make  one  return 
covering  the  entire  16  months  ended  April 
30,  1914.  In  the  case  of  such  corporation 
the  return  for  the  current  year  must  be 
made  for  the  calendar  year  ended  Decem¬ 
ber  31,  1913,  and  then  assuming  that  desig¬ 
nation  and  notice  had  been  properly  made 
and  given,  it  may  make  a  return  for  the 
4  months  ended  April  30,  1914,  and  there¬ 
after  the  return  will  be  made  on  the  basis 
of  the  fiscal  year  so  established. 

In  all  cases  where  a  fiscal  year  is  not 
established  as  above  prescribed  returns 
must  be  made  on  the  basis  of  the  calendar 
year,  in  which  case  such  returns  must  be 
filed  on  or  before  the  1st  day  of  March 
next  succeeding  such  calendar  year. 

Such  returns,  for  the  period  covered, 
must  be  true  and  accurate,  definite  and  com¬ 
plete,  and,  in  as  far  as  consistent  with  the 
provisions  of  the  law,  must  conform  to  the 
showing  made  by  the  books  of  the  com¬ 
pany,  and  must  be  verified  under  oath  or 
affirmation  of  its  president  or  other  principal 
officer,  and  its  treasurer  or  assistant  treas¬ 
urer;  that  is  to  say,  by  two  different  per¬ 
sons  acting  in  the  official  capacity  indicated. 

If  it  shall  appear  in  any  case  that  re¬ 
turns  have  been  made  to  the  collector  on 
the  basis  of  a  fiscal  year  not  designated  as 
above  indicated,  the  corporations  making 
such  returns  will  be  advised  that  such  re¬ 
turns  can  not  be  accepted,  but  must  be 
made  to  cover  the  business  of  the  calendar 
year. 

Returns  made  under  this  act  and  pur¬ 
suant  to  these  instructions  must  be  made 
on  the  new  forms  prescribed  by  this  de¬ 
partment. 

The  forms  heretofore  in  use,  under  the 
special  excise-tax  law,  can  not  be  used  for 
making  returns  for  either  the  fiscal  or  cal¬ 
endar  year  1913. 


5 


H  A  KM  S  TRUST  6-  SAVINGS  BANK 


If  returns  of  such  corporations  as  have 
properly  established  a  fiscal  year  are  due 
to  be  made  before  the  new  forms  are  avail¬ 
able,  the  collector  will  be  authorized  to 
grant  an  extension  of  time  to  such  corpora¬ 
tions,  not  exceeding  30  days,  for  the  filing 
of  such  returns,  by  which  time  the  new 
forms  prescribed  will  be  available  for  dis¬ 
tribution.  W.  H.  Osborn, 

Commissioner. 

Approved : 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


(T.  D.  1901) 

Waiver  Until  March  31,  1914,  of  Treasury 
Requirements  for  the  Filing  in  on  Certi¬ 
ficates  of  the  Numbers  of  the  Bonds  of 

Corporations,  Etc.,  Upon  the  Interest 
From  Which  the  Normal  Income  Tax 
of  One  Per  Cent  Is  Required  To  be 
Deducted  at  the  Source  Under  the 
Provisions  of  the  Income  Tax 
Law . 

Washington,  D.  C.,  Nov.  28,  1913. 

Notice  is  hereby  given  that  the  Treasury 
Regulations  heretofore  issued,  which  re¬ 
quire  that  the  numbers  of  the  bonds,  or 
other  like  obligations  of  corporations,  etc., 
from  which  interest  coupons  are  detached, 
or  upon  which  registered  interest  is  to  be 
paid,  shall  be  filled  in  on  the  Certificates, 
are  hereby  waived,  so  far  as  the  tilling  in  of 
the  numbers  of  the  bonds  or  other  such 
obligations  on  the  Certificate  is  concerned, 
until  March  31,  1914. 

In  all  other  respects,  the  Certificates  re¬ 
ferred  to  must  be  filled  in  in  accordance 
with  the  Treasury  Regulations,  before  the 
coupons  or  orders  for  registered  interest  to 
which  they  may  be  attached  shall  be  paid. 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 

Approved:  November  28,  1913. 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


6 


HAKKIS  TRUST  £r  SAVINGS  BANK 


(T  D.  1902) 

Extension  of  Time  for  Use  of  Temporary  Form 

1005,  From  November  16,  1913,  to  Janu¬ 
ary  15,  1914,  So  Far  as  Foreign 
Holders  of  Coupons  and  In¬ 
terest  Orders  May  Be 
Concerned. 

Washington,  D.  C.,  Nov.  28,  1913. 

The  time  for  the  use  of  Temporary  Cer¬ 
tificate,  Form  1005,  shall  be  extended  from 
November  16,  1913,  to  January  15,  1914, 
when  signed  by  a  person,  firm  or  corpora¬ 
tion  licensed  under  Paragraph  E,  of  the  In¬ 
come  Tax  Law,  provided  such  form  shall 
only  be  used  in  cases  where  the  coupons  to 
which  it  shall  relate  shall  have  been  re¬ 
ceived  by  such  licensed  person,  firm,  or  cor¬ 
poration  from  a  foreign  country. 

W.  H.  Osborn, 
Commissioner. 

Approved  :  November  28,  1913. 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


( T .  D.  1903) 

Regulations  Permitting  the  Substitution, 
Under  Certain  Conditions,  of  the  Certifi¬ 
cates  of  Banks,  Bankers,  or  Other  Collect¬ 
ing  Agents,  for  the  Certificates  of  the 
Owners  Required  To  Be  Attached  to 
Interest  Coupons  When  Presented 
for  Collection,  Under  Income  Tax 
Regulations  of  October  25,  1913, 
and  Those  Supplementary 
Thereto. 

Washington,  D.  C.,  Nov.  28,  1913. 

Treasury  Regulations  of  October  25, 
1913,  and  those  supplementary  thereto,  re¬ 
quire  that,  under  the  conditions  therein  pre¬ 
scribed,  there  shall  be  attached  to  interest 
coupons,  maturing  on  bonds  and  other  sim¬ 
ilar  obligations  of  corporations,  etc.,  which 
may  be  presented  for  collection  certain  cer¬ 
tificates  of  ownership  signed  by  the  owners 
of  the  bonds  from  which  the  coupons  were 
detached  or  by  their  duly  authorized  agents. 


7 


HARMS  TRUST  y  SAVINGS  BANK 


Notice  is  hereby  given  that  responsible 
banks,  bankers  and  collecting  agents  receiv¬ 
ing  coupons  for  collection  with  the  afore¬ 
said  certificates  of  ownership  attached,  may 
either  present  the  coupons  with  the  at¬ 
tached  certificates  to  the  debtor  or  withhold¬ 
ing  agent  for  collection,  or,  at  the  option  of 
the  collecting  agent,  the  certificates  above 
referred  to  may  be  detached  from  such  cou¬ 
pons  and  forwarded  direct  to  the  Commis¬ 
sioner  of  Internal  Revenue  at  Washington, 
D.  C.,  as  hereinafter  set  forth,  provided, 
such  bank,  banker  or  collecting  agent  shall 
thereupon  substitute  for  said  owners’  cer¬ 
tificate  and  attach  to  said  coupons,  in 
lieu  of  said  certificate  of  owner,  a  cer¬ 
tificate  signed  by  said  bank,  banker  or  col¬ 
lecting  agent,  to  whom  said  coupons  may 
have  been  first  presented  for  collection,  in 
substantially  the  following  form: 

Form  1000 A 

FORM  OF  CERTIFICATE  TO  BE  ATTACHED  TO 

INTEREST  COUPONS  IN  CASES  WHERE  THE 
COLLECTING  AGENT’S  CERTIFICATE 
IS  SUBSTITUTED  FOR  THE  CER¬ 
TIFICATE  OF  THE  OWNERS. 

The  owner’s  certificate,  of  which  the  fol¬ 
lowing  certificate  is  the  counterpart,  and 
bears  the  same  number  as  this  certificate, 
will  be  sent  by  the  collecting  agent  direct 
to  the  Commissioner  of  Internal  Revenue,  at 
Washington,  as  prescribed  by  Regulations. 

No . 

I  (we) . do  solemn- 

(Narae  of  collecting  agent) 

ly  declare  that  the  owner  of  $ . 

bonds  of  the . 

(Name  of  debtor  organization) 

from  which  were  detached  the  accompany¬ 
ing  interest  coupons  due . 

(Maturity) 

191.  . .,  amounting  to  $ . 

has  filed  with  me  (us)  a  duly  executed  cer¬ 
tificate  filled  up  in  accordance  with  Treas¬ 
ury  Regulations  of  October  25,  1913,  Form 
No . ,  which  certificate  has  been 


8 


HARRIS  TRUST  &»  SAVINGS  BANK 


indorsed  by  me  (us)  as  follows  :  “Owner’s 

certificate  No . 

. 191...” 

(Name  of  collecting  agency) 
and  in  which  the  said  owner  does  claim, 

(does  not) 

with  respect  to  the  income  represented  by 
said  interest,  the  benefit  of  a  reduction  of 
$ . ,  allowed  under  Para¬ 

graph  C,  Section  II,  of  the  Federal  Income 
Tax  Law,  the  total  exemption  to  which  said 
owner  now  claims  to  be  entitled  thereun¬ 
der  being  $ . .  and  I  (we) 

do  hereby  promise  and  pledge  myself  to 

(  ourselves) 

forward  the  above  described  certificate  exe¬ 
cuted  by  the  owners  as  stated  and  dated, 

. ,  191 . . .,  to  the 

Commissioner  of  Internal  Revenue,  at 
Washington,  D.  C.,  not  later  than  the  20th 
day  of  next  month,  in  accordance  with 
Treasury  Regulations. 


(Signature  of  Collecting  Agent) 

Address . 

Date . ,191... 

The  certificate  of  the  owner,  for  which 
the  foregoing  certificate  of  the  collecting 
agent  may  be  thus  substituted  by  the  col¬ 
lecting  agent  first  receiving  said  coupons  for 
collection  must  be  given  the  following  en¬ 
dorsement  by  the  collecting  agents  and 
should  be  made  preferably  with  a  rubber 
stamp : 

“Owner’s  Certificate  No . 


(Name  of  Collecting  Agency) 

. 191. 

(Give  Date  of  Certificate) 

The  counterpart  of  the  within  certifi¬ 
cate  bearing  like  number  was  attached 
to  the  coupons  within  mentioned  for 
delivery  to  the  debtor  or  withholding 
agent,  by  whom  the  coupons  are  pay¬ 
able.” 

Certificates  of  owners  for  which  collect¬ 
ing  agents’  certificates  are  substituted  must 


9 


HARRIS  TRUST  &■  SAVINGS  BANK 


be  forwarded  to  the  Commissioner  of  In¬ 
ternal  Revenue  at  Washington,  D.  C.,  by 
the  collecting  agency  receiving  them  not 
later  than  the  twentieth  day  of  the  month 
succeeding  that  in  which  said  coupons  were 
thus  received  for  collection. 

All  banks,  bankers,  or  other  collecting 
agents  who  may  substitute  their  certificates 
for  the  certificates  of  owners  under  the 
foregoing  plan  will  be  required  to  keep  a 
complete  record  of  all  such  transactions 
and  substitutions  of  certificates,  showing  all 
certificates  for  which  the  collecting  agents’ 
certificates  have  been  issued  in  lieu  of  the 
owners’  certificates. 

This  record  should  be  kept  by  months 
and  should  give  the  following  information : 

Serial  number  of  item  received. 

Date  received. 

Name  of  person  from  whom  re¬ 
ceived. 

Address. 

Name  of  debtor  corporation. 

Class  of  bond  from  which  coupons 
were  cut. 

Face  amount  of  coupons  collected. 

Deductions  from  tax  claimed  by  own¬ 
ers  under  Paragraph  C  of  Federal  In¬ 
come  Tax  Law. 

Amount  of  interest  collected. 

Until  the  further  ruling  by  this  Depart¬ 
ment  the  banks,  bankers  and  other  collect¬ 
ing  agents  who  may  substitute  their  certifi¬ 
cates  for  the  certificates  of  owners  under 
the  foregoing  plan  will  not  be  required  to 
secure  a  License  from  the  Treasury  De¬ 
partment  for  being  permitted  to  make  such 
substitutions  of  their  own  certificates  for 
those  of  the  owners,  provided  these  regu¬ 
lations  are  strictly  complied  with. 

The  permission  to  banks,  bankers  and 
collecting  agents  to  substitute  their  own 
certificates  under  the  above  regulations  for 
those  of  the  owners  of  the  bonds,  etc.,  will 
extend  to  responsible  banks,  bankers  and 


10 


HARRIS  TRUST  &■  SAVINGS  BANK 


collecting  agents  in  foreign  countries,  as 
well  as  to  those  of  the  United  States. 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 
Approved,  Nov.  28,  1913  : 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


( T.  D.  1904) 

Supplemental  Regulations  Relative  to  Duly 

Authorized  Agent’s  Authority  to  Sign 
Certificates  of  Ownership  Which 
Accompany  Coupons  or  Reg - 
isterd  Interest  Orders 
When  Presented 
for  Collec¬ 
tion, 

Washington,  D.  C.,  Nov.  28,  1913. 

Certificates  of  ownership,  which  are  re¬ 
quired  to  accompany  all  coupons  or  regis¬ 
tered  interest  orders  under  regulations  made 
in  pursuance  of  Section  2,  Act  of  October 
3,  1913,  may  be  signed  in  the  name  of  the 
owner  of  the  bonds,  by  his  duly  authorized 
agent,  and  the  said  certificates  shall  give 
the  full  name  and  address  of  both  the 
owner  and  his  authorized  agent. 

If  the  person,  firm  or  organization  to 
whom  the  certificate  thus  signed  is  pre¬ 
sented  for  collection,  is  reasonably  satisfied 
as  to  the  identity  and  responsibility  of  the 
person  signing  as  duly  authorized  agent, 
he  or  it  shall  stamp  or  write  on  the  face  of 
said  certificate,  “Satisfied  as  to  identity  and 
responsibility  of  agent,”  giving  name  and 
address  of  person  thus  certifying,  and  said 
certificate  may  then  be  accepted  by  persons, 
firms,  or  organizations  to  whom  presented 
without  requiring  further  evidence  as  to 
authority  of  agent. 

If  the  person,  firm,  or  organization  first 
receiving  certificate  of  ownership  signed  by 
an  agent  is  not  satisfied  or  can  not  satisfy 
himself  or  itself  as  to  the  agent’s  identity 
and  responsibility,  then,  in  that  event,  the 
authorized  agent  shall  furnish  evidence  of 
his  authority  so  to  act,  which  evidence  will 


li 


HAKRIS  TRUST  &  SAVINGS  BANK 


be  retained  by  the  person,  firm,  or  organiza¬ 
tion  receiving  it,  and  the  certificate  of  own¬ 
ership  shall  then  be  endorsed  as  provided 
herein. 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 

Approved : 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


(T.  D.  1905) 


Supplemental  Regulations  Relative  to  Partner¬ 
ships, 


Washington,  D.  C.,  Nov.  28,  1918. 

Inasmuch  as  individual  members  of  a 
partnership  are  liable  for  income  tax  upon 
their  respective  interest  in  the  net  earnings 
of  said  partnership  and  are  required  to  in¬ 
clude  said  net  earnings  in  their  personal 
returns,  the  partnership  may  file  with  the 
debtor  corporation,  or  with  a  withholding 
agent,  a  notice,  signed  in  the  name  of  the 
partnership,  by  a  member  thereof,  claiming 
a  deduction  of  a  specific  amount  on  account 
of  the  legitimate  expenses  (not  includ¬ 
ing  the  personal  or  living  expenses  of  the 
partners)  incurred  in  conducting  the  busi¬ 
ness  of  said  partnership,  and  upon  receipt 
of  said  notice,  said  withholding  agent  shall 
not  withhold,  and  shall  not  be  held  liable 
for,  the  normal  tax  on  the  amount  of  in¬ 
come  equal  to  the  amount  of  deduction 
claimed  in  said  notice,  but  in  no  event  shall 
the  total  of  the  amounts  claimed,  as  pro¬ 
vided  herein,  be  in  excess  of  the  total 
amount  of  the  actual  legitimate  annual  ex¬ 
penses  incurred  by  said  partnership  in  the 
conduct  of  its  business.  Application  for 
such  deduction  shall  be  made  in  substan¬ 
tially  the  following  form : 


12 


HARRIS  TRUST  &•  SAVINGS  BANK 


Form  1011 

FORM  OF  CERTIFICATE  TO  BE  FILED  WITH 
WITHHOLDING  AGENTS  BY  PARTNER¬ 
SHIPS  CLAIMING  DEDUCTIONS. 

“I,  . .  a  member 

of  the  firm  or  partnership  of . 

of . .  conducting  a  busi¬ 
ness  of . 

(Give  character  of  business  conducted  by  partnership.) 

and  residing  at . ,  do  solemnly 

(Give  full  address.) 

declare  that  the  said  partnership  is  the 

owner  of  $ .  bonds 

of  the  denomination  of  $ . 

each,  Nos .  of 

the . known 

(Give  name  of  debtor.) 

as  .  bonds, 

(Describe  the  particular  issue  of  bonds. 

from  which  were  detached  the  accompany¬ 
ing  interest  coupons,  due . 

. ,  191...,  amounting  to 

$ . ,  or 

upon  which  there  matured . 

. 191...,  $ . . . 

of  registered  interest,  or  is  the  owner  of 
.  upon 

(Property  or  investments.) 

which  there  accrued . . 

191...,  $ .  of 

income. 

We  hereby  claim  a  deduction  of  $ . 

.  allowed  on  account 

of  the  actual  expenses  incurred  in  conduct¬ 
ing  said  business  under  regulations  made 
in  pursuance  of  Section  2,  Act  of  October 
3,  1913,  and  do  solemnly  declare  that 
neither  the  partnership  nor  its  individual 
members  has  claimed  deductions  in  excess 
of  its  total  actual  legitimate  annual  ex¬ 
penses  of  conducting  the  business  of  said 
partnership,  and  that  no  portion  of  the  liv¬ 
ing  or  personal  expenses  of  the  partners  is 
included  in  the  deductions  claimed. 

Name  of  Signing  Partner.  ..." . 

For . 

i  (Name  of  partnership.) 

Address . 

Date . ,  191 .. . 


13 


HARRIS  TRUST  6-  SAVINGS  BANK 


Partnerships  are  not  subject  as  partner¬ 
ships  to  the  income  tax  and  are  required  to 
make  statements  of  their  income  and  earn¬ 
ings  as  partnerships  only  when  requested 
to  do  so  by  the  Commissioner  of  Internal 
Revenue  or  the  Collector  of  Internal  Rev¬ 
enue  for  the  district  in  which  said  partner¬ 
ship  has  its  principal  place  of  business,  and 
when  such  a  statement  is  required,  as 
aforesaid,  the  said  statement  shall  give  a 
complete  and  correct  report  of  the  gross 
income  of  the  said  partnership  and  also  a 
complete  account  of  the  actual  legitimate 
annual  expenses  of  conducting  the  business 
of  said  partnership  (not  including  living 
and  personal  expenses  of  the  partners)  and 
the  net  profits  and  the  name  and  address 
of  each  of  the  members  of  said  partner¬ 
ship  and  their  respective  interest  in  the  net 
profits  thus  reported. 

The  net  annual  income  of  a  partnership 
when  apportioned  and  paid  to  the  members 
thereof,  shall  be  returned  by  each  individ¬ 
ual  partner  receiving  same,  in  his  annual 
return  of  net  income  and  the  tax  shall  be 
paid  thereon  by  said  individual  partner,  as 
required  by  law. 

When  the  annual  income  of  a  partner¬ 
ship  is  not  distributed  and  paid  to  the  mem¬ 
bers  thereof,  the  respective  interest  of  each 
member  in  said  profits  shall  be  ascertained, 
and  the  individuals  entitled  thereto  shall 
include  the  said  amount  in  their  annual  re¬ 
turn  as  part  of  their  gross  income,  the  same 
as  if  said  profits  had  been  distributed  and 
paid  to  them. 

Undivided  annual  net  income  of  partner¬ 
ships  thus  returned  by  the  individual  mem¬ 
bers  thereof,  upon  which  the  tax  shall  have 
been  paid,  shall  not,  when  said  profits  are 
actually  distributed  and  paid  to  the  part¬ 
ners,  be  again  included  in  their  annual  re¬ 
turn  as  a  part  of  their  gross  income. 

Foreign  partnerships  or  firms,  all  the 
members  of  which  are  both  citizens  or  sub¬ 
jects  and  residents  of  a  foreign  country, 
which  are  the  owners  of  bonds  and  mort¬ 
gages  or  deeds  of  trust  or  other  similar 


14 


HARRIS  TRUST  6-  SAVINGS  BANK 


obligations,  including  equipment  trust 
agreements,  receivers'  certificates,  and 
stocks,  of  corporations,  joint-stock  compa¬ 
nies  or  associations  and  insurance  com¬ 
panies  organized  or  doing  business  in  the 
United  States,  may  file  with  the  debtor  or 
withholding  agent,  with  their  coupons  or 
orders  for  registered  interest,  or  orders  for 
other  income  derived  from  property  or  in¬ 
vestments  in  the  United  States,  certificate 
and  notice  of  ownership,  setting  forth  the 
facts  as  to  nonresidence  and  alienship,  and 
the  debtor  or  withholding  agent  shall  not 
withold  any  part  of  their  said  income. 

Where  a  foreign  partnership  or  firm  is 
composed  of  both  nonresident  foreigners 
and  citizens  of  the  United  States,  or  for¬ 
eigners  resident  in  the  United  States  or  its 
possessions,  the  certificate  of  ownership 
shall  show  this  fact,  and  the  name  and  legal 
address  of  each  member  of  said  partnership, 
who  is  a  citizen  of  the  United  States  or  who 
is  a  foreigner  residing  in  the  United  States 
or  its  possessions,  shall  be  given  on  the  said 
certificate  and  no  part  of  said  income  shall 
be  withheld  by  the  paying  agent. 

The  said  certificate  and  notice  of  owner¬ 
ship  shall  be  in  substantially  the  following 
form  : 

Form  1014 

FORM  OF  CERTIFICATE  TO  BE  PRESENTED 

WITH  COUPONS  OR  INTEREST,  OR  OTHER 
INCOME  ORDERS,  DETACHED  FROM 
BONDS  OR  OTHER  OBLIGATIONS 
OWNED  BY  PARTNERSHIP 
OR  FIRMS  OF  FOREIGN 
COUNTRIES 

I,  . ,  a  member  of  the 

firm  or  partnership  of . of 

. and  residing  at . , 

. do  solemnly  declare 

(Give  full  address.) 

that  the  said  partnership  is  the  owner  of 


$ .  bonds  of  the  denomination  of 

$ . each,  Nos . 

of  the . 

(Give  name  of  debtor.) 

known  as . from  which 


(Describe  particular  issue  of  bonds.) 

were  detached  the  accompanying  interest 


15 


HARRIS  TRUST  SAVINGS  BANK 


coupons,  due . 191 ,  amount¬ 
ing  to  $ . .  or  upon  which  there 

matured .  191 . . .,  $ . 


of  registered  interest,  or  is  the  owner  of 


(Property  or  investments.) 

upon  which  there  has  accrued . . 

191. . .,  $ . of  income  and  that 

all  the  members  of  said  firm  or  partnership, 
except . 

(Give  name  and  address  of  partners  not  non- 

. ,  are  nonresident  for- 

resident  aliens.) 

eigners  and  as  such  are  exempt  from  the 
income  tax  imposed  on  such  income  by  the 
United  States  Government  under  the  law 
enacted  October  3,  1913,  and  that  no  citi¬ 
zen  of  the  United  States,  wherever  resid¬ 
ing,  or  foreigner  residing  in  the  United 
States,  or  any  of  its  possessions,  except 
those  named  above,  has  any  interest  in  said 
bonds,  coupons  or  interest. 

Name  of  partner  signing . 

For  . 

me  of  partnership) 

Address . 

Date . 191 - 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 
Approved : 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


(T.  D.  No.  1906.) 

Supplemental  Regulations  Designating  Guard¬ 
ians,  Trustees,  Executors,  Administrators, 
Agents,  Etc.,  as  the  “Source”  for  Purpose 
oi  Collecting  Income  Tax  and  as  to 
Making  Annual  and  List  Returns 
and  Withholding  Tax. 

Washington,  D.  C.,  November  28,  1913. 
Guardians,  trustees,  executors,  adminis¬ 
trators,  agents,  receivers,  conservators,  and 
all  persons,  corporations,  or  associations 


16 


H  APvKI  S  TRUST  &-  SAVINGS  BANK 


acting  in  any  fiduciary  capacity  herein¬ 
after  referred  to  and  known  as  the  fiduci¬ 
ary,  who  hold  in  trust  an  estate  of  another 
person  or  persons  shall  be  designated  the 
“source”  for  the  purpose  of  collecting  the 
income  tax,  and  by  filing  the  following 
notice  with  other  debtors  or  withholding 
agents,  said  fiduciary  shall  be  exempt  from 
having  any  income  due  to  them  as  such, 
withheld  for  any  income  tax  by  any  other 
debtor  or  withholding  agent. 

Other  debtors  or  withholding  agents, 
upon  receipt  of  this  notice,  shall  refrain 
from  withholding  any  part  of  such  income 
from  said  Fiduciary  and  will  not,  in  such 
case,  be  held  liable  for  normal  tax  of  1 
per  cent  due  thereon.  The  form  of  no¬ 
tice  to  be  filed  with  the  debtor  or  withhold¬ 
ing  agent  by  the  Fiduciary  shall  be  sub¬ 
stantially,  as  follows : 

Form  1015 

FORM  OF  CERTIFICATE  TO  BE  FILED  WITH 
DEBTOR  OR  WITHHOLDING  AGENTS 
BY  FIDUCIARIES. 

The  following  form  of  certificate  should 
be  filed  with  the  debtor,  or  its  paying 
agents,  at  the  time  of  the  payment  to  the 
Fiduciary,  or  his  representative,  of  all  cou¬ 
pons,  interest  orders,  rents,  and  all  other 
kinds  of  income  whatsoever  upon  which 
the  tax  on  income  is  required  to  be  with¬ 
held  at  the  source. 

“I  (we)  do  solemnly  declare  that  I  (we) 


(Name  Fiduciary.) 

am  (are)  the  duly  authorized . 

(Indicate  in 

. for  the  beneficiaries 

what  capacity  acting-.) 

of  the  estate  or  trust  of . , 

which  estate  or  trust  is  entitled  to  the  in¬ 
come  from  $ . bonds  of  the  de¬ 
nominations  of  $ .  each.  Nos. 


of  the . 

(Give  name  of  debtor.) 

known  as . 

(Describe  the  particular  issue  of  bonds.) 


17 


HARRIS  TRUST  &■  SAVINGS  BANK 


bonds,  from  which  were  detached  the  ac¬ 
companying  coupons,  due  . , 

191.  . amounting  to  $ . ,  or 

upon  which  there  has  matured . , 

191. .  .,  $ .  of  registered  inter¬ 

est,  or  which  estate  or  trust  is  entitled  to 
other  income  from  property  or  investments 
upon  which  there  accrued  . , 

191 . .  $ . of  income. 

Acting  for  and  in  the  capacity  as  stated 

herein,  I  (we)  hereby  assume  the  duty  and 
responsibility,  imposed  upon  withholding 
agents  under  the  law,  of  withholding 
and  paying  the  income  tax  due,  for  which 
I  (we)  may  be  liable,  and  acting  in  said 
fiduciary  capacity  as  stated  herein,  I  (we) 
do  hereby  claim  exemption  from  having 
the  normal  tax  withheld  from  said  income. 

(Name)  (Capacity  in  \£hich  acting.) 

Address :  . 

Date . 191 .... 

RETURNS  MADE  BY  FIDUCIARY 
AGENTS. 

Said  Fiduciaries  shall,  on  or  before 
March  first  of  each  year,  when  the  annual 
interest  of  any  beneficiary  in  said  income 
is  in  excess  of  $3,000,  make  and  render  a 
return  of  the  income  of  the  person  or  per¬ 
sons  for  whom  they  act,  to  the  Collector 
of  Internal  Revenue  of  the  district  in  which 
the  Fiduciary  resides. 

This  return  shall  give  an  itemized  state¬ 
ment  of  the  gross  income  and  deductions 
claimed  and  shall  be  in  the  same  form  as 
prescribed  for  annual  returns  made  by  in¬ 
dividuals. 

Said  Fiduciary  acts  for,  and  in  behalf 
of,  the  beneficiaries  of  said  trust;  and  the 
annual  return  required  as  above  in  behalf 
of  said  beneficiaries  has  reference  only  to 
the  income  accruing  and  payable  through 
said  Fiduciary,  and  not  the  income  of  said 
beneficiaries  from  other  sources,  unless  the 
said  Fiduciary  is  legally  authorized  to  act 
for  said  beneficiaries  in  their  individual 


18 


HARRIS  TRUST  &-  SAVINGS  BANK 


capacity,  in  which  case  said  Fiduciary,  act¬ 
ing  as  duly  authorized  agent  of  the  individ¬ 
ual,  shall  also  make  the  personal  annual 
return  as  provided  by  law. 

There  shall  accompany  the  annual  return 
of  said  Fiduciary  a  list  giving  the  name  and 
full  address  of  each  beneficiary  and  the 
share  of  said  income  to  which  each  may 
be  entitled. 

LIST  RETURNS  FILED  BY  FIDUCIARY 
AGENTS. 

Fiduciary  agents,  in  addition  to  the  an¬ 
nual  return  of  income  required  by  these 
regulations,  shall  make  an  annual  list  re¬ 
turn,  as  provided  by  regulations  for  with¬ 
holding  agents,  whenever  payments  of  in¬ 
come  to  any  beneficiary  is  in  excess  of 
$3,000.  Said  list  return  shall  be  made  on 
or  before  March  first  of  each  year  to  the 
Collector  of  Internal  Revenue  for  the  dis¬ 
trict  in  which  said  Fiduciary  resides  or  has 
his  principal  place  of  business,  giving  name 
and  address  of  each  beneficiary  of  said 
trust,  to  whom  annual  income  in  excess  of 
$3,000  is  paid,  the  amount  of  income  paid 
to  each  beneficiary,  giving  source  of  in¬ 
come,  the  amount  of  exemption  claimed  by 
each  beneficiary,  if  any,  and  the  amount  of 
income  withheld  for  tax,  and  the  said  list 
return  shall  be  signed  by  the  Fiduciary 
making  same,  stating  in  what  capacity  act¬ 
ing,  and  give  his  name  and  full  address. 

Fiduciaries  having  an  annual  income  that 
is  not  distributed  or  paid  to  the  beneficiaries 
of  the  trust  under  which  said  Fiduciary 
acts  shall  make  an  annual  list  return,  as 
provided  herein,  and  said  list  return  shall 
show  the  name  and  address  of  each  ben¬ 
eficiary  having  a  distributive  interest  in  said 
income  in  excess  of  $3,000,  stating  the  dis¬ 
tributive  amount  of  each  beneficiary,  and 
shall  give  all  information  as  required  in 
said  list  returns,  and  shall  withhold  and  pay 
to  the  collector,  as  provided  by  law,  the  nor¬ 
mal  tax  of  one  per  cent  upon  the  distribu¬ 
tive  interest  of  each  of  said  beneficiaries  in 
excess  of  $3,000,  the  same  as  if  said  income 


19 


HARRIS  TRUST  &-  SAVINGS  BANK 


was  actually  distributed  and  paid;  exemp¬ 
tion  under  paragraph  C,  however,  may  be 
claimed  by  the  beneficiary  or  his  legal  rep¬ 
resentative  by  filing  his  claim  for  exemp¬ 
tion  with  the  Fiduciary  agent. 

When  the  fiduciary  agents  deduct,  with¬ 
hold  and  pay  the  normal  tax  on  undivided 
annual  net  income  as  provided  herein,  they 
shall  not  be  required  to  withhold  and  pay 
again  the  normal  tax  on  said  income  when 
actually  distributed  and  paid  to  said  ben¬ 
eficiaries,  nor  shall  the  beneficiaries  be  re¬ 
quired  again  to  pay  the  normal  tax  on 
the  amounts  on  which  the  tax  has  been  paid 
when  such  amounts  are  distributed. 

Where  the  normal  tax  is  withheld  and 
paid  by  fiduciary  agents  on  undivided  an¬ 
nual  income,  beneficiaries  (or  their  legal 
representatives)  in  whose  behalf  said  tax 
is  paid  may  file  notice  with  said  fiduciary 
and  claim  the  benefit  of  any  annual  ex¬ 
emption  they  may  be  entitled  to  under  par¬ 
agraph  C  of  the  Act  of  October  3,  1913,  as 
provided  by  regulations,  the  same  as  if  their 
distributive  interest  in  said  income  was 
actually  paid. 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 

Approved : 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


(T.  D.  No.  1907.) 

Supplemental  Instructions  as  to  Acceptance 
of  Certificate  Form  1000  as  Originally  Pre¬ 
scribed  in  Regulations  of  October  25, 1913; 
and  the  Original  and  Amended  Form 
1000  as  It  Has  Been  Adapted  to  the 
Use  of  Fiduciary  Agents;  and  Cer¬ 
tificate  Forms  1001,  1003  and  1004 
as  They  Have  Been  Adapted  To 
the  Use  of  Foreign  Organiza¬ 
tions  and  Partnerships. 

Washington,  D.  C.,  November  26,  1913. 

Certificates  of  ownership,  Form  1000,  as 
originally  prescribed  in  Regulations  of  Oc¬ 
tober  25,  1913,  shall  be  accepted  by  debt- 


20 


HARRIS  TRUST  dr  SAVINGS  BANK 


ors  or  withholding  agents  when  properly 
filled  in  and  signed  by  the  owner  of  the 
bonds  or  his  duly  authorized  agent  until 
December  10,  1913,  and  after  that  date  only 
the  amended  Form  1000,  as  prescribed  by 
Regulations,  shall  be  accepted. 

Form  1000,  original  and  amended,  as  it 
has  been  adapted  to  the  use  of  guardians, 
trustees,  executors,  administrators,  agents, 
receivers,  conservators,  and  all  persons, 
corporations  or  associations  acting  in  a 
fiduciary  capacity,  when  properly  filled  in 
and  signed  and  giving  the  information  re¬ 
quired  by  the  regulations,  shall  be  accepted 
by  debtors  or  withholding  agents  until  reg¬ 
ulations  giving  a  prescribed  form  of  certifi¬ 
cates  of  ownership  for  fiduciary  agents  are 
issued,  and  for  thirty  days  thereafter. 

Forms  1001,  1003  and  1004,  as  they  have 
been  adapted  to  the  use  of  foreign  organ¬ 
izations  and  foreign  partnerships,  when 
properly  filled  in  and  signed  and  giving  the 
information  required  by  regulations,  shall 
be  accepted  by  debtors  or  withholding 
agents  until  regulations  giving  a  prescribed 
form  of  certificate  of  ownership  for  foreign 
organizations  and  foreign  partnerships  are 
issued,  and  for  thirty  days  thereafter. 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 

Approved : 

W.  G.  McAdoo, 

Secretary. 


(T.  D.  No.  1908.) 

Regulations  Prescribing  Form  of  Certificate 
To  Be  Furnished  by  Foreign  Organizations 
Not  Engaged  in  Business  in  the  United 
States  and  not  Subject  to  the 
Income  Tax  on  Interest  or 
Other  Income  Collectible 
at  the  Source. 

Washington,  D.  C.,  November  28,  1913. 

The  certificate  to  be  furnished  by  foreign 
)  organizations  not  engaged  in  business  in 
the  United  States  shall  be  in  substantially 
the  following  form : 


* 


21 


HARRIS  TRUST  dr  SAVINGS  BANK 


CERTIFICATE  TO  BE  FURNISHED  BY  FOREIGN 
ORGANIZATIONS  NOT  SUBJECT  TO  TAX 
ON  INTEREST  OR  OTHER  INCOME 
AT  SOURCE. 


I, . the 


A,  .  .  . 

(Give  name.) 

of  the  , 

(Give  official  position.) 

a . 

(Name  of  organization.) 

of  - - 

(Character  of  organization.) 

(Country.) 


Located  at . 

(Postoffice  address.) 

do  solemnly  declare  that  said . 


(Give  name  of  organization.) 

is  a  foreign  organization,  not  engaged  in 
business  in  the  United  States,  and  is  the 
owner  of  $ .  bonds  of  the  de¬ 
nomination  of  $ .  each,  Nos. 


of  the . known  as 

(Give  name  of  debtor.) 

(Describe  particular  issue  of  bonds.) 

bonds,  from  which  were  detached  the  ac¬ 
companying  coupons,  due . , 

191. . .,  amounting  to  $ . or 

upon  which  there  matured . , 

191. . .,  $ . ,  of  registered  inter¬ 
est,  or  is  the  owner  of . 


(Property  or  investments.) 

upon  which  there  was  accrued . , 

191 . . .,  $ . of  income,  and  that 

under  the  provisions  of  the  Income  Tax 
Law,  of  October  3,  1913,  said  organization 
being  a  foreign  organization,  said  interest 
or  income  is  exempt  from  the  payment  of 


22 


HARRIS  TRUST  6-  SAVINGS  BANK 


taxes  collectible  at  the  source,  which  ex¬ 
emption  is  hereby  claimed. 

Date . ,  191 .  . 

Name . , 


(Official  position.) 

Of . 

(Name  of  Organization.) 

Address . 

(Postoffice.) 

W.  H.  Osborn, 

Commissioner  of  Internal  Revenue. 

Approved:  November  28,  1913. 

W.  G.  McAdoo, 

Secretary. 


(T.  D.  1909.) 

License  Required  for  Collection  of  Income 
Received  From  Foreign  Countries . 


Supplemental  Regulations  as  to  Making  Ap¬ 
plication,  Filing  Bond  and  Issuing  License 
to  Collecting  Agencies  of  Income  From 
Foreign  Countries. 

Washington,  D.  C.,  Nov.  28,  1913. 

All  persons,  firms,  or  corporations  under¬ 
taking  for  accommodation  or  profit  (this 
includes  handling  either  by  way  of  pur¬ 
chase  or  collection)  the  collection  of  cou¬ 
pons,  checks,  bills  of  exchange,  etc., 

(a)  for  or  in  payment  of  interest 
upon  bonds  issued  in  foreign 
countries,  and 

(b)  upon  foreign  mortgages  or  like 
obligations,  and 

(c)  for  any  dividends  upon  stock  or 
interest  upon  obligations  of  for¬ 
eign  corporations,  associations, 
or  insurance  companies  engaged 
in  business  in  foreign  countries, 


23 


HARRIS  TRUST  &■  SAVINGS  BANK 


who  are  required  by  law  to  obtain  a  license 
from  the  Commissioner  of  Internal  Reve¬ 
nue,  shall  make  application  to  the  Collector 
of  Internal  Revenue,  for  the  district  in 
which  they  do  business,  for  such  license  in 
the  following  form: 


FORM  OF  APPLICATION  FOR  LICENSE  FOR 
THE  COLLECTION  OF  INCOME  FROM 
FOREIGN  COUNTRIES. 

Form  1017 

UNITED  STATES  INTERNAL  REVENUE. 
APPLICATION  FOR  LICENSE  FOR  COLLECTION 
OF  INCOME  FROM  FOREIGN  COUNTRIES. 

State  of . 

County  of . 

The  undersigned,  . 

(Name.) 

(Office.) 

of . 

(State  name  of  person,  firm  or  corporation.) 

being  duly  sworn  according  to  law,  declares 

that  on  and  after  the..." . 

day  of  . ,  191 .  . ., 

he  (we)  intend.  .  to  engage  in  the  business 
of  collecting  foreign  income  payments  of 
interest  or  dividends  by  means  of  coupons, 
checks,  or  bills  of  exchange.  The  aggregate 
amount  of  annual  collections  of  such  for¬ 
eign  income  at  the  principal  and  branch 

offices  is  estimated  at  $ . 

The  location  of  the  principal  and  branch 
offices  is  as  follows : 

Principal  Office  . 

Branch  Offices . . 

(If  a  firm,  state  names  of  members.) 


Said  person,  firm  or  corporation  is  now 

engaged  in  business  as . 

and  desires  to  conduct  the  business  of  col¬ 
lecting  foreign  income  at  the  above  address 
or  addresses,  and  hereby  makes  applica- 


24 


HARRIS  TRUST  &-  SAVINGS  BANK 


tion  for  the  license  required  to  be  secured 
by  persons,  firms  or  corporations  engaging 
in  the  business  of  collecting  income  from 
foreign  countries  under  the  provisions  of 
paragraph  E  of  Section  II.  of  the  Income 
tax  law  of  October  3,  1913,  and  I  (we) 
hereby  promise  and  pledge  myself  (our¬ 
selves)  to  comply  strictly  with  the  provi¬ 
sions  of  said  law  and  the  rules  and  regula¬ 
tions  of  the  Treasury  Department  which 
have  been  or  may  hereafter  be  issued  in 
respect  to  the  collection  and  payment  of 
such  foreign  income. 

Signed . , 

for . 

(Name  of  firm  or  corporation.) 


Sworn  to  before  me  this 
. day  of 

.  191..., 


The  Collector  of  Internal  Revenue,  upon 
receipt  of  such  application,  shall  satisfy 
himself  that  the  person,  firm  or  corporation 
making  application  is  considered  to  be  of 
good  character  and  business  standing  and 
may  require  that  he  or  they  shall  be  able  to 
show  a  financial  rating  in  one  or  more  of 
the  recognized  mercantile  agencies  of  the 
United  States,  equal  to  at  least  one-tenth  of 
the  estimated  amount  of  annual  collections 
of  foreign  income  as  stated  in  the  applica¬ 
tion. 

The  Collector  of  Internal  Revenue  hav¬ 
ing  thus  satisfied  himself  of  the  business 
and  financial  reliability  of  the  person,  firm 
or  corporation  making  application  for  li¬ 
cense,  may  issue  the  license  without  re¬ 
quiring  a  bond  for  the  faithful  performance 
of  duty  and  compliance  with  the  law  and 
regulations. 

In  cases  where  the  person,  firm  or  cor¬ 
poration  shall  fail  to  satisfy  the  Collector 
of  Internal  Revenue  of  his  or  their  busi- 


25 


HARRIS  TRUST  &  SAVINGS  BANK 


ness  or  financial  reliability,  the  Collector 
may  refuse  to  issue  license  or  may  issue  a 
license  upon  the  applicant  filing  a  surety 
bond  satisfactory  to  the  Commissioner  of 
Internal  Revenue  for  a  penal  sum  equal 
to  two  per  cent  of  the  estimated  amount  of 
collections  stated  in  the  application,  the 
minimum  penal  sum,  however,  to  be  $1,000, 
and  the  maximum  not  in  excess  of  $100,- 
000. 

The  bond,  when  required,  shall  be  exe¬ 
cuted  in  duplicate,  one  of  which  shall  be 
retained  in  the  office  of  the  Collector  of 
Internal  Revenue  with  whom  the  bond  is 
filed,  and  the  other  shall  be  forwarded  by 
the  Collector  to  the  Commissioner  of  In¬ 
ternal  Revenue  at  Washington,  D.  C. 

The  form  of  license  to  be  issued  shall  be 
as  follows: 


Form  1010  No . 

TREASURY  DEPARTMENT. 

OFFICE  OF  THE  COMMISSIONER  OF  INTERNAL 
REVENUE.  LICENSE  FOR  COLLECTION 
OF  FOREIGN  INCOME. 


doing  business  at 


located  and 


and  engaged  in  the  business  of . 

. ,  having  made  application  in  ac¬ 
cordance  with  the  provisions  of  Section  II. 
of  the  Act  of  October  3,  1913,  and  the  reg¬ 
ulations  made  in  pursuance  thereof,  is 
hereby  licensed  to  accept  for  collection  cou¬ 
pons,  checks,  and  bills  of  exchange  for  or 
in  payment  of  interest  upon  bonds  issued  in 
foreign  countries  and  upon  foreign  mort¬ 
gages  or  like  obligations,  and  for  the  divi¬ 
dends  upon  stock  of  foreign  corporations, 
foreign  joint-stock  companies  or  associa¬ 
tions,  or  foreign  insurance  companies  en¬ 
gaged  in  business  in  foreign  countries, 
from . •. . ,  191. . .,  until  re¬ 

voked. 


26 


i 


HARRIS  TRUST  6-  SAVINGS  BANK 


This  license  will  not  be  valid  until  coun¬ 
tersigned  by  the  Collector  of  Internal  Rev¬ 
enue  for  the  district  in  which  issued. 
Countersigned : 


(Collector.) 

. Dist.,.  . . . 

Commissioner  of  Internal 
Revenue. 

This  license,  made  up  in  the  form  of 
bound  books  containing  50  each,  with  ap¬ 
propriate  stubs,  will  be  furnished  in  blank 
to  the  Collectors  of  Internal  Revenue,  with 
the  facsimile  signature  of  the  Commission¬ 
er  of  Internal  Revenue  thereon,  and  shall 
not  be  valid  until  countersigned  by  the  Col¬ 
lector  of  Internal  Revenue  by  whom  issued. 

This  license  may  be  issued  without  cost 
to  the  persons  to  whom  issued  and  shall 
continue  in  full  force  until  revoked.  Fail¬ 
ure  to  give  or  renew  the  bond  in  cases 
where  a  bond  is  required  will  automatically 
revoke  the  license. 

In  cases  where  licenses  are  issued  with¬ 
out  bond,  the  Collector  shall,  at  stated  year¬ 
ly  periods,  inquire  into  and  satisfy  himself 
of  the  financial  responsibility  of  all  licen¬ 
sees. 

When  any  person,  firm  or  corporation 
has  branch  offices  and  desires  to  collect  said 
foreign  interest  or  dividend  income  through 
said  branch  offices,  the  application  for  li¬ 
cense  or  licenses  shall  be  made  (and  bond 
furnished,  when  a  bond  is  required)  by  the 
person,  firm  or  corporation  through  its 
principal  office  for  its  branch  office  or  of¬ 
fices. 

The  bond  in  such  cases  shall  be  based  on 
the  total  amount  of  such  foreign  business 
transacted  by  both  the  home  office  and  its 
branch  office  or  offices. 

This  application  for  licenses  shall  be 
^  made  (and  bond  furnished  when  bond  is 
required)  to  the  Collector  of  Internal  Rev¬ 
enue  for  the  district  in  which  the  principal 
or  home  office  is  located.  The  names  and 


27 


HARRIS  TRUST  6-  SAVINGS  BANK 


addresses  of  the  branch  offices  shall  be  fur¬ 
nished  to  the  Collector  in  the  application  of 
the  said  principal  and  if  the  requirements  of 
the  Bureau  of  Internal  Revenue  are  com¬ 
plied  with  to  the  satisfaction  of  the  said 
collector,  then  said  collector  shall  certify 
this  fact  to  the  Collector  of  Internal  Reve¬ 
nue  for  the  district  in  which  the  branch  of¬ 
fice  for  which  the  license  is  desired  is  lo¬ 
cated,  and  the  collector  to  whom  this  cer¬ 
tification  is  made  shall  thereupon  issue  a  li¬ 
cense  as  provided  herein  to  such  branch  of¬ 
fice. 

No  bond  will  be  required  in  any  case  for 
the  month  of  December,  1913,  but  the  re¬ 
quired  license  may  be  issued  by  Collectors 
of  Internal  Revenue  immediately  upon  re¬ 
ceipt  of  the  blank  licenses  in  all  cases  where 
the  applications  for  licenses  which  may 
have  been  filed  shall  have  been  duly  ap¬ 
proved. 

The  bond,  if  required,  must  be  filed  for 
the  calendar  year  1914  and  for  each  calen¬ 
dar  year  thereafter. 

All  bonds  must  be  renewed  or  new  bonds 
furnished  on  or  before  January  1  of  each 
successive  year. 

The  applications  for  these  licenses  and 
the  stubs  of  the  licenses  issued  shall  be  re¬ 
tained  and  preserved  in  the  offices  of  the 
Collectors  of  Internal  Revenue. 

W.  H.  Osborn, 
Commissioner. 

Approved  November  28,  1913. 

W.  G.  McAdoo, 

Secretary  of  the  Treasury. 


28 


